What is Wrong With This Picture?
PMI's Standard for Portfolio Management
defines a portfolio as:
"A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet the strategic business objectives. The projects or programs of a portfolio may not necessarily be interdependent or directly related."
Further, it defines portfolio management as:
"The centralized management of one or more portfolios, which includes identifying, prioritizing, authoring, managing and controlling projects, programs and other related work, to achieve specific strategic business objectives."
Notice two key phrases in these definitions: "to meet the strategic business objectives" and "to achieve specific strategic business objectives."
So shouldn't strategic projects take priority? Shouldn't the portfolio also be guided by strategic alignment in the selection of business unit projects and reactive projects? If so, should pet projects be in the portfolio at all if they are not strategically aligned?
The real key to the project selection and prioritization
is in maximizing business value with a robust business case
Standard for Portfolio Standard, ISBN: 1-930699-90-5, Published by: Project Management
Institute; Copyright 2006.